Budget uncertainty has cast a shadow over the UK's luxury yacht market, with top manufacturers reporting a significant decline in sales at the recent Southampton international boat show.
The gloomy mood is attributed largely to concerns about higher taxes and their impact on potential buyers. According to Bill Stringer of Key Yachting, a leading boat broker, "We are in a soft spot. There's a lot of uncertainty in the world. Clients do have money but they're more cautious and the budget is on people's minds."
The threat of higher inheritance tax on pensions has particularly unsettled buyers, with many feeling "brutally attacked" by the proposed changes. Phil Dollin of Inspiration Marine Group notes that some buyers are delaying purchases as they await the government's next move.
While there is still demand for luxury yachts, the market is becoming increasingly complex and expensive. The cost of buying a boat has risen dramatically over the past five years, with many potential buyers struggling to afford the latest models.
Cash buyers have traditionally been the lifeblood of the industry, but even they are now taking a cautious approach due to high marine finance costs. Stuart Brotherton of Ancasta notes that while his sales network has had its best September ever for sales, it's largely due to cash buyers who are willing to shoulder the financial burden.
As the government continues to weigh up its budget options, yacht manufacturers and brokers remain optimistic about the long-term prospects of the industry. However, in the short term, uncertainty is dominating the market, with potential buyers choosing to wait and see how the situation unfolds before making a decision.
The gloomy mood is attributed largely to concerns about higher taxes and their impact on potential buyers. According to Bill Stringer of Key Yachting, a leading boat broker, "We are in a soft spot. There's a lot of uncertainty in the world. Clients do have money but they're more cautious and the budget is on people's minds."
The threat of higher inheritance tax on pensions has particularly unsettled buyers, with many feeling "brutally attacked" by the proposed changes. Phil Dollin of Inspiration Marine Group notes that some buyers are delaying purchases as they await the government's next move.
While there is still demand for luxury yachts, the market is becoming increasingly complex and expensive. The cost of buying a boat has risen dramatically over the past five years, with many potential buyers struggling to afford the latest models.
Cash buyers have traditionally been the lifeblood of the industry, but even they are now taking a cautious approach due to high marine finance costs. Stuart Brotherton of Ancasta notes that while his sales network has had its best September ever for sales, it's largely due to cash buyers who are willing to shoulder the financial burden.
As the government continues to weigh up its budget options, yacht manufacturers and brokers remain optimistic about the long-term prospects of the industry. However, in the short term, uncertainty is dominating the market, with potential buyers choosing to wait and see how the situation unfolds before making a decision.
! Those higher taxes are KILLING the vibe 
. Like, who wants to shell out that extra cash for a boat when there's a recession looming? Not me, that's for sure 
. And can we talk about how expensive these boats have gotten?! Like, I get it, luxury is a thing 
, but some of us are on a budget, honey 
. The fact that cash buyers are taking a cautious approach due to high finance costs is like, totally understandable 
. I mean, who wants to risk financial ruin over a boat purchase? Not me, that's for sure 
. Let's hope the gov decides to make some changes soon and get this market firing on all cylinders again 
!
So what's going on here? On one hand, you've got these super rich people who are supposed to be the backbone of the luxury yacht market, but they're not buying because of all this tax uncertainty. 
It's like the government is saying "we'll take your money when we feel like it". And then you've got these cash buyers trying to keep the industry afloat, but even they are being cautious due to high finance costs? 
I think it's really interesting that people are putting off buying luxury yachts because of concerns about taxes, even if they have the money 
. I mean, who can afford a brand new yacht? Not many people, that's for sure 
.
. And it's not just about luxury yachts, either; I think this uncertainty is affecting all sorts of industries and investments 
I think it's crazy that people are worried about taxes affecting their yacht buying decisions! 
Can't wait to see how it plays out! 
. But seriously, I've been thinking about getting into yachting for years now, and this uncertainty is really putting me off 
. It's like the whole industry is holding its breath waiting for some clarity on these budget changes 
or not sure if its just the usual cash vs credit thing... anyone got a link to some articles about this? 